Risk management is an issue of results

The importance of business solidity to ensure business continuity

Although the outsourcing of no-core services is the way forward to address the speed of change in markets and national scenarios, it is also necessary to consider the impacts that outsourcing of services can have on business continuity.

With this in mind, companies and organizations that face the choice of activities related to corporate risk management, must first of all ask themselves if the outsourcing process can be easily re-internalized in the future, in the event of sudden changes in the scenario or of crisis events, deeply questioning the ability of partner companies to guarantee the continuity of service in any circumstance.

Therefore, together with the detailed technical assessments and adequacy of the solutions, with respect for the processes and business models, it is also necessary to take into account the analysis of the economic and financial solidity of a business, in order to ensure that the risk of outsourcing processes are guaranteed, also by the operational stability of the partner.

The issue of numbers is not secondary to companies that want to continue to provide services and guarantee the continuity of management of processes that, although no-core within the company dynamics, can have a significant impact on the operation of the business.

It is not a question of privileging large companies instead of small ones but of assessing the ability of these companies to respond to rapid changes in the markets, through economic and financial solidity, especially considering an overall context. Companies have clashed with investments in labor-intensive activities and progressive reductions in the prices of traditional products and technologies, which have undermined the mechanisms of value creation.

The digital and ecological transition, the digitalization of processes along with cloud computing, data analysis and IT infrastructure are the answers that companies must seek on the market to mitigate or respond to the fragility that some organizations have had to face during the pandemic. The crisis and the evolution of risk scenarios, together with relationships also based on the economic and financial stability of the partners, may represent an ultimate guarantee to secure the continuity of services.